Apple TV 2nd gen user do not set preferences to auto play subtitles. Seems to be overlay issues in firmware. Select subtitle by holding down main selector button after video has begun playing. If you receive Dolby Digital sound via TOSLINK then set Dolby Digital mode to ON setting.

If you have updated your Apple TV v2 to firmware 4.1 and videos take an exceedingly long time to begin playing then there was an update problem. Restore your Apple TV v2 on a computer using a micro usb cable. If normal restore doesn't work then use a DFU restore. Use PwnageTool to assist in placing unit into DFU mode if necessary.

I also recommend using tinyumbrella to backup your shsh blobs for your Apple TV v2. To place your Apple TV v2 in the proper mode to back up shsh blobs take your unit to your computer area and turn the unit on with the HDMI cable plugged into it and the power cable. Once the unit has fully booted (led not blinking) then remove the HDMI cable and plug in Micro USB cable then plug into PC while you have tinyumbella running on PC/Mac. I believe you can remove the power cord at this point as well as it will stay powered over USB.

If you find yourself without a micro USB cable then check your cell phones recharging cables. Palm Pre uses a detachable micro USB cable and so do many newer Samsung phones. Ask a friend.

If you still have an issue with your ATV v2 and firmware 4.1 AND you connect your HDMI to your AV receiver first; please unplug ATV from power source and plug HDMI directly into TV and then plug ATV into power source and verify functionality. Providing this works use TOSLINK and set your Dolby Digital mode to ON in the ATV settings.

If everything I said above dont get your DD working with ATV 2 and latest firmware then try some work arounds. Play video, then press down to the chapter bar, and skip to the end. Then play video again. It play fine now with DD.

Other work around is to set your default language to non english. Play movie, while playing hold down selector button, now select the DD track. The DD track will play.

Complain to Apple!! its fubar.
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